As the UK consumer’s already-squeezed wallet now begins to see the full impact of mortgage rate increases, the battle for discretionary spend remains a critical challenge for consumer, retail and leisure business leaders.
Yet, while 56% of consumers are saying they are reducing non-essential spend* and the focus on value for money remains top of mind, we still see an appetite for spending in certain categories that signposts significant opportunity for those who understand their target customers and align to those needs.
Each quarter, KPMG polls 3,000 UK consumers to gauge consumer confidence and propensity to spend, and we’ve now partnered with Snoop, a free money-management app, to combine this insight with their customer spending data to bring you a more holistic and realistic view of consumer spending.
So, what choices are consumers making?
But we see spending growth in several categories…
Does that match their spending?
Access our Consumer Pulse Snapshot to see whether what consumers are saying they’re doing is truly reflected in their spending behaviour.
Inevitably, increased household budget and savings being used to pay the mortgage, or higher rent cost, will continue to lead to less money being spent elsewhere within the economy by consumers, which will continue to challenge both retailers, brands and leisure businesses.
Linda Ellett UK Head of Consumer Markets, Retail and Leisure, KPMG
